SELECT MEDICAL SIGNS AGREEMENT WITH BALLAD HEALTH TO OPERATE JOINT VENTURE CRITICAL ILLNESS RECOVERY HOSPITAL

Rhea-AI Summary

Select Medical (NYSE:SEM) has announced a strategic partnership with Ballad Health to jointly operate Select Specialty Hospital – Tri-Cities, a 46-bed critical illness recovery hospital in Kingsport, Tennessee. The facility will relocate from Ballad Health's Bristol Regional Medical Center to Indian Path Community Hospital as a hospital-in-hospital arrangement.

Select Medical will serve as the majority owner and managing partner of the joint venture. The company has been serving the region's post-ICU care needs for over 25 years and operates six additional critical illness recovery hospitals throughout Tennessee. The relocation and partnership aim to expand access to specialized post-acute care services in the region.

Positive

• Strategic partnership establishes majority ownership and management control for Select Medical
• Expansion of service capacity through relocation to a larger 46-bed facility
• Enhanced operational efficiency through hospital-in-hospital arrangement
• Geographic expansion of critical care services in Tennessee market

Negative

• None.

News Market Reaction

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+1.73% News Effect

On the day this news was published, SEM gained 1.73%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

MECHANICSBURG, Pa., June 27, 2025 /PRNewswire/ -- Select Medical Corporation today announced it signed a membership interest purchase agreement with Ballad Health to jointly operate Select Specialty Hospital – Tri-Cities, a critical illness recovery hospital in Kingsport, Tenn. The facility, licensed as long-term acute care, will be a hospital-in-hospital located in Ballad Health's Indian Path Community Hospital. 

Select Medical will serve as the majority owner and managing partner of the 46-bed joint venture hospital with Ballad Health. The hospital, which is currently owned and operated by Select Medical, will relocate from Ballad Health's Bristol Regional Medical Center to Indian Path Community Hospital following regulatory approval.

"We have served the growing post-ICU care needs of the region for more than 25 years, operating as Select Specialty Hospital – Tri-Cities in Bristol," said Tom Mullin, president of Select Medical. "This partnership with Ballad Health and the new, expanded location will provide the opportunity to help even more critically ill patients heal, recover and return to their families and community."

"This partnership with Select Medical reflects Ballad Health's commitment to delivering high-quality, specialized care to the communities we serve," said Marvin Eichorn, executive vice president and chief administrative officer at Ballad Health. "By relocating Select Specialty Hospital – Tri-Cities to Indian Path Community Hospital, we are expanding access to critical illness recovery services in a way that is both patient-centered and operationally efficient. We are proud to collaborate with a trusted partner to meet the evolving needs of our region."

"The relocation of Select Specialty Hospital – Tri-Cities to Kingsport represents a significant step forward in enhancing post-acute care in our region," said Dr. Chad Couch, northern region president at Ballad Health. "This move allows us to better align services within the health system and ensure that patients recovering from serious illness receive the specialized care they need, closer to home."

In addition to Select Specialty Hospital – Tri-Cities which will relocate from Bristol to Kingsport, Select Medical operates six additional critical illness recovery hospitals throughout the state of Tennessee, in Jackson, Knoxville, Memphis, Nashville and Powell.

About Ballad Health
Ballad Health is an integrated community health improvement organization serving 29 counties of the Appalachian Highlands in Northeast Tennessee, Southwest Virginia, Northwest North Carolina and Southeast Kentucky. Our system of 20 hospitals, post-acute care and behavioral health services, and a large multi-specialty group physician practice works closely with an active independent medical community and community stakeholders to improve the health and well-being of close to one million people. By leading in the adoption of value-based payments, addressing health-related social needs, funding clinical and health systems research and committing to long-term investments in strong children and families in our region, Ballad Health is striving to become a national model for rural health and healthcare. Learn more at www.BalladHealth.org.

About Select Medical
Select Medical is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics in the United States based on the number of facilities. As of March 31, 2025, Select Medical operated 104 critical illness recovery hospitals in 29 states, 35 rehabilitation hospitals in 14 states, and 1,911 outpatient rehabilitation clinics in 39 states and the District of Columbia. At March 31, 2025, Select Medical had operations in 41 states and the District of Columbia. Information about Select Medical is available at www.selectmedical.com.

Media Contacts
Select Medical: Shelly Eckenroth, seckenroth@selectmedical.com or 717-920-4035
Ballad Health: 423-427-1356

FAQ

What is the new partnership between Select Medical and Ballad Health?

Select Medical and Ballad Health have signed an agreement to jointly operate Select Specialty Hospital – Tri-Cities, a 46-bed critical illness recovery hospital in Kingsport, Tennessee, with Select Medical serving as the majority owner and managing partner.

Where will the Select Medical-Ballad Health joint venture hospital be located?

The hospital will be relocated from Ballad Health's Bristol Regional Medical Center to operate as a hospital-in-hospital within Indian Path Community Hospital in Kingsport, Tennessee.

How many critical illness recovery hospitals does Select Medical operate in Tennessee?

Select Medical operates seven critical illness recovery hospitals throughout Tennessee, located in Jackson, Knoxville, Memphis, Nashville, Powell, and the Tri-Cities facility.

How long has Select Medical been operating in the Tri-Cities region?

Select Medical has been serving the post-ICU care needs of the Tri-Cities region for more than 25 years, operating as Select Specialty Hospital – Tri-Cities in Bristol.

What type of services will the new Select Medical-Ballad Health facility provide?

The facility will provide critical illness recovery services and post-ICU care for patients recovering from serious illnesses, operating as a licensed long-term acute care hospital.